Daily Markets Wrap - Jan 21, 2022 - HDFC Securities

Mr. Deepak Jasani, Head of Retail Research, HDFC Securities

Nifty declined for the fourth consecutive session on Jan 21 as global markets again came under selling pressure. Nifty opened gap down in line with weak Asian markets and made a morning low at 0925 Hrs. It later kept rising and correcting till it made an afternoon low at 1455 Hrs. A sharp recovery followed and Nifty closed much higher than the intra day low. At close, Nifty was down 0.79% or 139.8 points at 17617.

On a day when the volumes on the NSE were a little higher than recent averages, FMCG was the only sectoral index that ended in the positive while Realty, Metals, Consumer Durables, Capital Goods, Telecom, IT sectoral indices fell the most. BSE Midcap index fell 1.82% while Smallcap index fell 1.68%.

European shares dropped on Friday, following on from losses in Asia and a late slump in the U.S. as fears about the pace of monetary policy tightening and a batch of weaker-than-expected earnings knocked investor confidence again.

Nifty ended the week with the worst losses in about two months. It fell 3.5% over the week. Advance decline ratio fell sharply to much under 1:1. This suggest that the nervousness has spread to the broader markets. The US Fed meet next week may not allow a sharp bounce early next week. 17288-17376 could be the next support while 17747-17798 could be the next resistance for the Nifty.

Source : Equity Bulls

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